Borrowers taking out secured loans 'should haggle'
12/12/2008People should not just accept the first interest rate they are offered on secured loans, it has been suggested.
According to research from the money website Fool.co.uk, 25 per cent of Brits do not know how much interest they are paying on loans and credit cards.
The study also revealed 76 per cent of borrowers are unaware it is possible to haggle with lenders.
As a result, Fool.co.uk stated some 27 million people may be paying more interest than necessary.
David Kuo, a financial expert with the website, said many borrowers believe the interest rates they are offered cannot be altered.
However, he added: "If you are unhappy with the interest rate you are paying then it can't hurt to ask for a better one."
Mr Kuo pointed out the worst thing a lender can say is no.
Nevertheless, people considering taking out a secured loan may find they are pleasantly surprised by the rate of interest they are offered.
Lenders generally tend to offer competitive rates for this type of borrowing because a person's property is used as security.
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